San Diego, CA (PRWEB) January 05, 2014
LoanLove.com is a borrower advice website that provides detailed insights into the mortgage industry in a fun and entertaining way. The team at LoanLove.com is devoted to help empower both first time and experienced homeowners with valuable resources, first-class knowledge and connections to top-rated industry professionals and has the mission of helping consumers and borrowers to obtain the latest information on mortgage lending trends, the real estate market and the U.S. financial landscape in order to help them obtain a home loan that they will love. In a newly released article, the website provides some mortgage loan advice for 2014 and explains some of the factors that will shape how borrowers find loans this year.
The article explains, “The Mortgage Bankers Association (MBA) expects mortgage loans to increase by nine percent in 2014. However, the Mortgage Bankers Association sees residential loan origination falling nearly a third from 2013 to 1.2 trillion dollars. The MBA estimates that mortgage volume in 2013 will reach $1.7 trillion. So, there are many buyers, why is the mortgage industry going to tighten up and do less business? True, there are many buyers, but there is a shortage of houses on the market. Less houses for sale means less homes sold and fewer mortgages closed. One of the main reasons for this shortage is current homeowners now are waiting. By holding on now, they hope to see their home values appreciate more before putting their homes on the market.”
Loan Love also looks at the mortgage regulations affecting 2014 home loan borrowers. The article says, “But, it is not only market conditions that influence the mortgage industry. Twenty-fourteen will see higher mortgage interest rates, lower caps on federally insured mortgages and tighter qualifications for those taking out a mortgage. The Consumer Protection Financial Bureau (CPFB) ordered the debt-to-income ratio for mortgage borrowers to change from 45 percent to 43 percent. The CPFB also tightened rules effective 2014 for documentation. The changes in documentation rules follow those changes made to rules for appraisers who can be successfully sued if a plaintiff can show negligence or misconduct. According to one analyst, the changes will tighten the mortgage market – the biggest constraint being the 43 percent rule.”
The article also looks at upcoming changes for the Conventional Qualified Mortgage Rule and FHA, VA and USDA qualified mortgages. LoanLove.com’s 2014 forecast for mortgage rates is also given. It reads, “Twenty-fourteen is heading to be a strange year for mortgage rates and the mortgage industry. It appears to be full of contradictions. Nevertheless, certain economic basics are in play – supply, demand, and regulation. Overall, the mortgage industry will see the following changes. Based on lower housing inventory, the total dollar amount of mortgages will decrease in 2014. Mortgage rates will increase, as it is likely that the Federal Reserve will stop buying mortgage-backed securities to attract private lenders back into the market.”
To learn more about the changes mentioned above, and get a list of mortgage tips for 2014, please read the full article at LoanLove.com.